THIS IS 3 SEPARATE ASSIGNMENTS. PLEASE DO NOT COMBINE THEM.
#1
Referencing this weeks readings and lecture, what information is provided in the balance sheet? What is a common-sized balance sheet and how do you create one? For your final project company, does anything stand out on the balance sheet?
*Lecture is attached*
#2
Your friend, Liz, loves to shop at Target and is now interested in investing in the company. Tom, another friend, has told her that Targets debt structure is risky with obligations of nearly 74% of total assets. Liz sees that debt on the balance sheet is 65% of total assets and is confused by Toms comment. Write an explanation to Liz discussing the debt structure of Target and why Tom thinks Target is risky. Be sure to explain clearly what information appears on financial statements, as well as what information does not appear directly on the financial statements. Use the information below in your discussion.
At fiscal year-end February 2, 2008, Target Corporation had the following assets and liabilities on its balance sheet (in millions):
Target reported the following information on leases in the notes to the financial statements:
Total rent expense was $165 million in 2007, $158 million in 2006, and $154 million in 2005, including percentage rent expense of $5 million in 2007, 2006, and 2005. Most long-term leases include one or more options to renew, with renewal terms that can extend the lease term to more than 50 years. Certain leases also include options to purchase the leased property.
Future minimum lease payments required under non-cancellable lease agreements existing at February 2, 2008, were:
(a) Total contractual lease payments include $1,721 million related to options to extend lease terms that are reasonably assured of being exercised, and also include $98 million of legally binding minimum lease payments for stores that will open in 2008 or later.(b) Calculated using the interest rate at inception of each lease.(c) Includes current portion of $4 million.
#3
Balance Sheet Ford Motor Company
In a two- to three-page paper (not including the title and reference pages), explain the purpose of a balance sheet and analyze Ford Motor Companys balance sheet from its 2012 Annual Report. In your analysis, you must determine the financial ratios and compare them to industry standards.
Your paper must be formatted according to APA style as outlined in the Ashford Writing Center, and it must include citations and references for the text and at least two scholarly sources from the Ashford University Library.